NexG Berhad Annual Report 2026

41 01 | ABOUT NEXG 02 | OUR LEADERSHIP 03| OUR PERSPECTIVE 04 | SUSTAINABILITY 05 | GOVERNANCE 06 | FINANCIAL STATEMENTS 07 | OTHER INFORMATION Our Perspective A significant portion of the Group’s revenue continues to be derived from government-related contracts. While NexG maintains strong relationships with key agencies and continues securing major long-term projects, delays in procurement cycles or policy changes may affect contract timing and revenue recognition. The Group continues diversifying its revenue streams through digital trust solutions, AI-driven verification technologies and regional market expansion initiatives. In line with the Group’s prudent capital management approach and commitment to balancing shareholder returns with long-term growth initiatives, NexG Berhad did not declare any final dividend for the financial year ended 31 March 2026. Subsequent to the financial year end, the Board declared an interim single-tier tax-exempt dividend of 0.01 sen per share on 21 May 2026, payable on 7 July 2026. The dividend reflects the Group’s continued commitment to rewarding shareholders while preserving financial flexibility to support ongoing infrastructure expansion, technology investments and strategic growth initiatives. The Board remains focused on maintaining a balanced capital allocation strategy that supports both sustainable shareholder returns and the Group’s long-term digital transformation agenda. The Group remains exposed to market fluctuations relating to strategic investments and quoted securities. Adverse market movements may impact valuation and financial performance through unrealised fair value adjustments. To manage this exposure, NexG continues adopting prudent investment monitoring and portfolio management practices. The Group’s operations depend on reliable supply chains, secure chip availability and specialised production materials. Global supply disruptions or procurement delays may impact project delivery timelines and costs. To mitigate these risks, the Group maintains strategic supplier relationships, inventory planning measures and internal production capabilities. As a provider of secure identity and digital trust solutions, the Group remains exposed to cybersecurity, operational continuity and reputational risks associated with sensitive national infrastructure projects. NexG continues strengthening its cybersecurity frameworks, operational safeguards and compliance controls to maintain stakeholder confidence and service reliability. ANTICIPATED OR KNOWN RISKS DIVIDEND Customer Concentration Risk Investment and Market Risk Operational and Supply Chain Risk Cybersecurity and Reputation Risk Management Discussion AND ANALYSIS (Cont’d)

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